HDFC Bank has announced that its chief executive, Sashidhar Jagdishan, will not seek another term and will retire on October 26. His departure comes less than six months after the resignation of chair Atanu Chakraborty, who cited "ethical differences" with the lender. Jagdishan, who has led the bank since 2020, confirmed his decision despite persuasion to stay.

The bank, with a market capitalisation of $116bn, will now search for a new CEO amid shareholder pressure, as its shares have fallen 27% this year. The leadership shake-up follows HDFC Bank’s $40bn merger in 2023 with Housing Development Financing Corp, which created a financial services behemoth with $340bn in assets. Earlier this year, Tata Sons chair N Chandrasekaran also announced he would not seek reappointment after a feud with Noel Tata.

Observers have noted concerns about compliance and governance, though insiders say the core issue with Chakraborty’s exit was a clash of strategy, personality, and leadership style with Jagdishan. The bank recently faced regulatory setbacks, including a restriction from Dubai’s Financial Services Authority over mis-selling of Credit Suisse AT1 bonds.